Policy Update: Comment Deadline on UBIT Provisions

Nonprofit Connect wants you to be aware of the current UBIT (unrelated business income tax) policy changes affecting nonprofits.

Deadline for Comments – This Friday
The deadline to post comments on the IRS’s page regarding the impact of the parking expense UBIT on nonprofits closes this Friday, February 22. The unrelated business income tax on expenses for employee parking (IRS Notice 2018-99) was part of the Tax Cuts and Jobs Act from 2017, and has been a point of disruption and confusion for many nonprofits since.

The Independent Sector published research last month regarding the burden that this tax could place on many nonprofits, and the outlook for nonprofits affected by this tax going forward. Nonprofits who wish to make a comment regarding the impact of this tax on their organization can do so here.

Contact Congress
In addition, it may be beneficial for you to send your comments to your U.S. Congressional delegation. There have been efforts to repeal this tax, including a bill introduced last week by House Majority Whip Clyburn (D-SC), but the future of such legislation is uncertain. Making your comments visible to your elected representatives could help when determining future policy or the restructuring of current policy.

To find your elected officials’ information, you can visit our new Contact Congress page.

If you have further questions about what is included in the employee parking UBIT, you can visit the National Council of Nonprofits’ page with more detailed information.